Like many post-soviet states, the social security system in Ukraine still has Soviet characteristics. Ukraine has undergone enormous changes since its independence.  Important revisions of social security laws have taken place since the first laws of the 1990 independence. Reforms between 2001 and 2003 brought significant changes for employees. Rising contributions for employees and decreasing payments for employers to social security schemes are the most important. Prior to those reforms there was a global contribution rate, of 1% or 2% from employees and 37% from employers. Since 2003, the employer contribution rate was lowered to 32% of the payroll. Additionally, these schemes provide less protection than before.  

Old-age pension

The pension system underwent important changes with the 2003 law. Two main laws are changing the old-age pensions. The first introduced a mandatory state pension insurance,  implemented in 2004. As of 2007, the contributions of employees to this mandatory pension scheme made up 7 % of their earnings.

The second law, also implemented in 2004, concerned the so-called “Non-State Pension Provision” and aimed to stimulate voluntary contributions to old age pension schemes. This voluntary pension scheme is based on a tax relief (15 % of the gross yearly wage, limited to a cap of 1.4 % of the monthly minimum subsistence level).

Health care coverage

Health care is tax-financed in Ukraine, but different practices of health financing other than the official financing mechanism are restricting universal access to health care. Private health insurance which has spawned paid clinics and public services which only a small minority of the population can afford.

Unemployment benefits

After independence, a law for unemployment benefits came into force in 1992. Previously, benefits were completely financed by employers and were paid for one year at a decreasing rate during that year. After the reform in 2001, employees contributions to unemployment benefits were introduced.

Chernobyl Benefits

After the dissolution of the USSR, a law called,  “On the Status and Social Protection of Citizens Who Suffered from the Chernobyl Catastrophe” was approved in 1991. The Chernobyl program is designated to liquidators (persons in charge of the removal of the consequences) and residents of the area. Its resources were mainly spent on compensation payments followed by resettlement costs. Since 2000, the focus of benefits has changed and more health protection has been allocated.

This overview is extracted from the               Global Extension of Social Security platform (GESS) and provided courtesy of the ILO Social Security Department.